Submitted by fuzuoku on September 17, 2007

• Category: Business
• Words: 1286
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Finance

Fixed cost -- a cost that does not change as sales volume changes (in the short run.) Fixed costs normally include such items as rent, depreciation, interest, and any salaries unaffected by ups and downs in sales or the employment costs of staff who provide services not directly related to production or output (e.g. the accounting department).
Variable cost -- a cost that changes as sales or production change. If a business is producing nothing and selling nothing, the variable cost should be zero. However, there will probably be fixed costs.
Direct Costs - A direct cost is a cost that can be directly related to producing specific goods or performing a specific service. For...

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